Term Definition
Cloud computing is the delivery of computing resources — servers, storage, networking, databases, software, and analytics — over the internet rather than through infrastructure an organization owns and operates itself.
Instead of purchasing hardware, building capacity in advance, and managing infrastructure internally, organizations consume cloud services on demand and pay based on usage, subscriptions, or committed capacity agreements.
Cloud computing is not a single technology or deployment model. It encompasses multiple service models, deployment approaches, providers, and operating strategies — each with different ownership boundaries, cost structures, and operational responsibilities.
The Three Questions Every Cloud Strategy Must Answer
Most cloud conversations combine multiple decisions into one discussion. They're better treated as three separate questions.
Should the workload move? Not every application benefits from cloud deployment. Some workloads remain more cost-effective, performant, or compliant in dedicated environments. This question comes before any provider conversation.
Which service model fits? Infrastructure services, managed platforms, and SaaS applications create different ownership boundaries, operational requirements, and cost structures. Choosing the wrong model is more consequential than choosing the wrong provider.
Which provider is the right fit? AWS, Microsoft Azure, Google Cloud, and others offer different ecosystems, commercial models, and operational considerations. Provider selection is a separate decision from deciding to use cloud.
Service Models
Infrastructure as a Service (IaaS) provides compute, storage, and networking resources. The provider manages the physical infrastructure; the customer manages operating systems, applications, security configurations, and data. IaaS offers the greatest flexibility and the most operational responsibility.
Platform as a Service (PaaS) provides managed infrastructure and development platforms. The provider manages hardware, operating systems, and runtime; customers focus on applications and data. PaaS reduces infrastructure management overhead while accelerating development.
Software as a Service (SaaS) delivers complete applications over the internet. The provider manages infrastructure, platform, and application; customers manage users, configuration, and data. Microsoft 365, Salesforce, and ServiceNow are common examples.
Deployment Models
Public Cloud — Infrastructure shared across multiple customers and delivered over the internet. The most common model.
Private Cloud — Infrastructure dedicated to a single organization, hosted by a provider or operated within the organization's own facilities.
Hybrid Cloud — Combines cloud services with on-premises infrastructure. Common when compliance, latency, or legacy application requirements prevent full cloud adoption.
Multi-Cloud — Uses multiple cloud providers simultaneously, often to support specific workloads or reduce concentration risk. Increases operational complexity alongside flexibility.
Common Misconceptions
Cloud automatically reduces costs. Cloud costs are elastic in both directions. Unused resources, poor governance, and storage growth can produce bills that exceed expectations. Effective cloud cost management requires ongoing oversight — it doesn't happen by default.
Cloud automatically improves security. Cloud operates under a shared responsibility model. The provider secures the underlying infrastructure; the customer remains responsible for identities, access controls, configurations, data protection, and compliance. Most cloud security incidents result from customer-side misconfiguration, not provider failures.
Cloud eliminates vendor lock-in. Cloud can reduce dependency in some areas while increasing it in others. Applications built around provider-specific services often become difficult and expensive to migrate elsewhere.
Everything should move to cloud. Cloud is not an all-or-nothing decision. Many organizations run successful hybrid environments where some workloads remain on-premises or in colocation because those environments better support performance, compliance, or cost requirements.
Cloud vs. On-Premises vs. Colocation
The more useful question is rarely "should we move everything to cloud?" — it's "which workloads belong where?"
On-premises — Infrastructure owned, operated, and maintained internally. Most appropriate for highly predictable workloads, strict regulatory requirements, or environments with specialized performance needs.
Colocation — The organization owns the hardware; it resides in a third-party data center. The provider supplies power, cooling, physical security, and connectivity. The customer retains control of the infrastructure.
Cloud — Infrastructure owned and operated by the provider, consumed as a service. Delivers the greatest advantage for variable workloads, rapid growth, development environments, and organizations seeking operational flexibility.
Signs Your Cloud Strategy May Need a Review
Most organizations discover cloud problems during budget reviews, migrations, or compliance assessments — not architecture planning. A review is worth considering if:
- Cloud spending is increasing without clear visibility into what's driving it
- Security responsibilities between the organization and provider are not clearly defined
- Teams can provision resources without governance controls in place
- Workloads were migrated without validating long-term economics
- Provider dependencies have grown without a documented exit strategy
